Question: Nothing is missing from the question. It is a multiple choice question but I will like to see the workings on it. The question ends

Nothing is missing from the question. It is a multiple choice question but I will like to see the workings on it. The question ends at (d)

 Nothing is missing from the question. It is a multiple choice

d. the fair value of the VIE's assets. 3. A U.S. company performs a quantitative analysis of the sufficiency of a n a quantitative analysis of the sufficiency of a newly-formed special purpose tity's equity to absorb expected losses. The SPE was formed with $11,250 in equity and $99,750 in debt, for a total fair value of $111,000. Assume the SPE's expected net cash inflows all occur at the end of one yeht Expected cash flows and probabilities are: Probability 0.65 0.20 0.15 Expected net cash flow $156,000 46,800 31,200 he U.S. company uses a risk-adjusted discount rate of 4 percent to determine the present value of cash flows. The SPE's expected losses are a. $12,150 b. $13,200 c. $18,150 d. $25,350 The consolidation working paper at the date of acquisition takes the book value halances of subsidiary and

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